{"id":3609,"date":"2026-05-05T05:45:33","date_gmt":"2026-05-05T05:45:33","guid":{"rendered":"https:\/\/finzexpert.com\/blog\/hsbc-shares-drop-as-first-quarter-pre-tax-profit-misses-estimates\/"},"modified":"2026-05-05T05:45:33","modified_gmt":"2026-05-05T05:45:33","slug":"hsbc-shares-drop-as-first-quarter-pre-tax-profit-misses-estimates","status":"publish","type":"post","link":"https:\/\/finzexpert.com\/blog\/hsbc-shares-drop-as-first-quarter-pre-tax-profit-misses-estimates\/","title":{"rendered":"HSBC shares drop as first-quarter pre-tax profit misses estimates"},"content":{"rendered":"\n
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Europe’s largest lender HSBC on Tuesday reported first-quarter pre-tax profit of $9.4 billion, missing analysts’ estimates on the back of higher expected credit losses and other impairment charges.<\/p>\n

HSBC’s revenue gained 6%, year on year, exceeding estimates, on stronger wealth fee and other income.<\/p>\n

Here are HSBC’s first-quarter results compared with the\u00a0consensus estimates\u00a0compiled by the bank.<\/p>\n

    \n
  • Pre-tax profit:<\/strong>\u00a0$9.37 billion vs. $9.59 billion<\/li>\n
  • Revenue:<\/strong>\u00a0$18.62 billion vs. $18.49 billion<\/li>\n<\/ul>\n

    The lender, whose first-quarter profit before tax fell 1% year on year, saw shares in Hong Kong drop 3.7%.<\/p>\n

    Expected credit losses of $1.3 billion were $400 million higher compared with the same period a year earlier, according to HSBC, linked to exposure to a financial sponsor in the UK and provisions owed to increased uncertainty and a worsening economic outlook due to the conflict in the Middle East.<\/p>\n

    The bank, however, said that it was on track to delivering $1.5 billion in annualised cost reduction by the end of June 2026. “Through the privatisation of Hang Seng Bank, we expect to realise $0.5bn in pre-tax revenue and cost synergies across both our brands in Hong Kong by the end of 2028.”<\/p>\n

    HSBC completed the privatization of Hang Seng Bank on Jan. 26, with the latter’s shares subsequently delisted from the Hong Kong Stock Exchange.<\/p>\n

    The bank’s net interest income rose 8% in the first quarter, year on year, to $8.9 billion as did operating expenses, also up 8%, owed to the impacts of inflation, forex, higher planned spending and performance-related pay. <\/p>\n

    The lender highlighted risks due to the Middle East conflict, including higher oil prices, sharper inflation, a significant slowdown in GDP, warning that if those factors came into play there could be a “mid-to-high single digit percentage” negative impact on its profit before tax.<\/p>\n

    While HSBC maintained its targeted return on tangible equity \u2014 a measure of profitability \u2014 of 17%, it warned that should the adverse impact from the Middle East crisis materialize, it could bring RoTE, excluding notable items, below 17% in 2026. Annualised RoTE in the reported quarter was 17.3%.<\/p>\n

    The HSBC board also approved its first interim dividend for 2026 of 10 cents per share.<\/p>\n<\/div>\n

    Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Europe’s largest lender HSBC on Tuesday reported first-quarter pre-tax profit of $9.4 billion, missing analysts’ estimates on the back of higher expected credit losses and other impairment charges. HSBC’s revenue gained 6%, year on year, exceeding estimates, on stronger wealth fee and other income. Here are HSBC’s first-quarter results compared with the\u00a0consensus estimates\u00a0compiled by the […]<\/p>\n","protected":false},"author":1,"featured_media":3610,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[205,3159,3307,1960,3309,3308,2452,689],"class_list":["post-3609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan","tag-drop","tag-estimates","tag-firstquarter","tag-hsbc","tag-misses","tag-pretax","tag-profit","tag-shares"],"_links":{"self":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=3609"}],"version-history":[{"count":0,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/posts\/3609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media\/3610"}],"wp:attachment":[{"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=3609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=3609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finzexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=3609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}